The city Municipal parking lot between the St. George Ferry Terminal and Richmond County Bank Ballpark, St. George, is used for game parking when it's not full. Staten Island Advance photo

STATEN ISLAND, N.Y. --- Staten Islanders who pay monthly and quarterly rates to park at municipal lots and garages got a scare from the city Department of Transportation when they received letters notifying them of a pending increase Jan. 1. But that was a mistake.

The department sent out letters claiming the City Council approved rate hikes, which was another error since the Council does not set parking rates, said Joseph Borelli chief of staff for Councilman Vincent Ignizio.

"No such action has been taken by the Council," Borelli said. "In fact, the DOT does not need Council approval to enact rate increases, but needs only to send out 30-day notices to permit-holders."

The department acknowledged its mistake, and will send correction letters to permit holders.

Anyone who sent the incorrect payment will be refunded the difference, according to the letter.

"The changes were postponed and the previous letters were rescinded," said a spokesman for the Department of Transportation, who refused to explain how the errors were made.

Currently, monthly parking rates are $60 for municipal lots around the city.

The last rate increase was proposed for Sept. 1, 2011, and it would have raised monthly rates to $150. But the outcry from small businesses and commuters squashed that hike.

The Department of Transportation also would not elaborate on the usage of the word "postponed" in its response, suggesting that a future rate hike is coming.

Fred Limeri, owner of The Limeri Agency, Inc. in Great Kills has held a permit for the nearby municipal lot for about 10 years for his employees and received letters from the Department of Transportation.

The original letter sent Nov. 28, was rescinded on Dec. 4, and in it, the department said it would "promptly" refund any funds over paid, Limeri said.

But he described it as a "temporary stay of execution."

Since the parking rates were not raised in 2011, Limeri feels that a new round of rate increases will be announced in the spring or summer next year.---Follow @siadvance on Twitter